Boise Cascade sales and profits fade in Q4
Boise Cascade Company reported fourth quarter 2022 consolidated sales declined 9% to $1.628 billion from fourth quarter 2021 sales of $1.782 billion.
The company’s Wood Product sales, including sales to its own Building Materials Distribution (BMD) businesses, decreased 5% to $425.6 million for the period compared to sales of $446.6 million in the fourth quarter a year ago. Boise Cascade said the decrease was driven by lower sales of I-joists and LVL (engineered wood products - EWP).
EWP volumes decreased in the quarter due to declining housing starts and a significant inventory destocking through the customer channel, the company said.
Sales in the company’s BMD business fell 12% to $1.443 billion for the quarter.
For the full year, Wood Product sales, including sales to BMD, increased 7%, to $2.12 billion from sales of 1.97 billion in 2001.
BMD sales increased 7% to $7.64 billion for the full year from sales of $7.17 billion in 2021. The increase in sales was driven by sales price increases of 11%, offset partially by a sales volume decrease of 4%, the Boise, Idaho-based company said.
Boise Cascade posted a net income of $117,360 million for the fourth quarter, falling 31% from a net income of $169,075 million for the same period in 2021.
The company’s full-year net income increased 20% to $857,658 million compared to a net income of $712,486 million for 2021.
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The Bottom Line: While profits increase 20% for the full year, Boise Cascade’s net income drops 31% as the company faced residential construction headwinds in the fourth quarter.
What the CEO said: "We recognize the industry will face challenges during 2023 given current economic uncertainties and weaker near-term demand for new residential construction; however, we remain committed to providing high service levels to our vendor and customer partners through industry cycles,” said Nate Jorgensen, CEO of Boise Cascade.
Company info: Click here for the full fourth quarter 2022 financial report from Boise Cascade Company.
